Business Environment Profiles - United States
Published: 25 July 2025
Federal funding for homeland security
71 $ billion
-4.0 %
The total annual budget outlays by the Department of Homeland Security (DHS) represent federal funding for homeland security. The department's stated goal is to prepare for, prevent and respond to domestic emergencies, particularly terrorism. In addition, the department oversees federal agencies dealing with transportation security, customs, immigration, citizenship and border security, as well as the Federal Emergency Management Agency (FEMA), which deals with the federal response to domestic natural disasters. Data presented prior to the DHS' inception in 2002 represent the combined funding of agencies that would later be brought under DHS control. Data and projections are sourced from The White House's Office of Management and Budget. Figures are presented in constant 2017 dollars.
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Federal funding for homeland security is set to rise by 0.01% in 2025, reaching $71.3 billion. This marginal increase is largely due to the extension of funds under the Continuing Resolution (CR) passed early in the year, which extended funding at 2024 levels while Congress prepared the next appropriations. Until September 2025, the Department of Homeland Security (DHS) will operate with slightly increased funding from initiatives such as additional grants for ICE, the TSA and FEMA, ensuring operational continuity until new appropriations are decided.
Over the past five years, since 2020, federal funding for homeland security has experienced significant fluctuations driven by shifting national priorities and external circumstances. During the onset of the COVID-19 pandemic, there was a notable increase in funding because of the declaration of a National Emergency and the implementation of Title 42, an executive order that allowed the Border Patrol to restrict migrant entry. This led to a substantial 61.1% surge in homeland security funding in 2020 under the Trump Administration. In contrast, funding adjustments were seen in 2021, reflecting the new administration's shift in policy focus amid the dissipation of pandemic-related exigencies, leading to a recalibration and subsequent decline in funding needs by 2022. As pandemic conditions receded, 2023 saw a resurgence in funding needs driven by immigration-related challenges following the expiration of Title 42, along with scrutiny from various political fronts impacting DHS's operational strategies. Despite periods of cutbacks, especially as reliant CRs served as stopgap financial measures after routine fiscal appropriations ran dry post-September 2024, the DHS has managed to navigate these variabilities effectively. Consequently, the reliance on CRs, while ensuring continuity, also led to slight funding declines reflected in a CAGR decrease of 4.0% over this period.
The agency, under the OBBBA, will start receiving enhanced funding in 2026. This will provide add...
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